Nationwide sells big West Side office campus to Dallas-based fund as it moves to hybrid work model
A Dallas mutual fund bought Nationwide Mutual Insurance Co.’s large West Side campus, which the company put up for sale this summer when it switched to a hybrid work model due to the pandemic.
Reserve Capital Partners bought the 270,000 square foot facility on 9903 Nationwide Drive in Westover Hills on Tuesday.
The sale price was not available, but the 30.2 acre property was valued at $ 54.4 million by the Bexar Appraisal District. Nationwide will lease around 55,000 square feet there.
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It is Reserve Capital’s first acquisition in San Antonio, despite unsuccessful attempts to buy other large office properties in the city, said co-founder and partner Brant Landry. Southlake-based Trinity Private Equity Group is their equity partner in the transaction.
“We immediately liked it,” Landry said of the Nationwide site. “We’re one of those buyers who still believe in offices and keep trying to buy offices, and we felt this was a once in a lifetime opportunity.”
The complex has a full-service cafeteria and a large conference center, among other things, Landry said. Reserve Capital plans to make some cosmetic upgrades and add outdoor games.
The generous space could be attractive to cybersecurity and health companies or government entities, he said, and talks are ongoing with some potential tenants.
Nationwide employees started working remotely in March 2020 amid the coronavirus pandemic. Over the next month, the insurance and financial services company announced it was moving to a hybrid workplace model.
At least half of the company’s employees will work remotely permanently, so Nationwide is reducing its office space. San Antonio is one of four main locations the company announced last year that it would keep employees in the office.
The West Side complex was built for 2,000 employees but hasn’t been full in a while, the company said in June when it announced plans to sell the property. Nationwide employs more than 900 people on site.
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“A small number of facilities and security jobs were affected by the plans,” said spokesman Joe Case. “San Antonio is still the most important employment center for our company.”
In 2006 the company first expressed interest in opening a “third headquarters” in San Antonio.
Nationwide, there were 932 employees here at the time, and the city made the final list when the company conducted a location search that was supposed to bring in more than 800 new jobs. But then the process stopped, and local officials wondered what happened until 2008, when it was resumed and San Antonio was finally selected.
The City of San Antonio and Bexar County each provided $ 500,000, and the Texas Enterprise Fund provided $ 2.5 million in incentives. The campus opened in 2013.
Nationwide terminated its agreement with the state in 2011 and paid back interest owed with interest, Case said in June. The company is also ending its dealings with the city and county, and expects to repay approximately $ 1.2 million.